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A new reason to like Elizabeth Warren: Lawmakers urge tougher limits on emergency lending by Fed
Last edited Tue Aug 19, 2014, 12:03 PM - Edit history (1)
A group of federal lawmakers from both houses of Congress, led by U.S. Sen. Elizabeth Warren (D-Mass.) and Sen. David Vitter (R-La.), sent a letter to Federal Reserve Chair Janet Yellen Monday calling on the Fed to strengthen restrictions on its emergency lending authority.
During the financial crisis, the Fed invoked its emergency lending authority to provide over $13 trillion in loans primarily to a select group of large financial institutions. These loans were long-term and offered at below-market rates.
Congress enacted Section 1101 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) to ensure that such bailouts could not happen again. However, the letter says, the Fed’s proposed rule implementing Section 1101 does not place “meaningful restrictions on the agency’s emergency lending powers.”
MORE HERE: http://wonkynewsnerd.com/lawmakers-urge-tougher-limits-on-emergency-lending-by-fed/
During the financial crisis, the Fed invoked its emergency lending authority to provide over $13 trillion in loans primarily to a select group of large financial institutions. These loans were long-term and offered at below-market rates.
Congress enacted Section 1101 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) to ensure that such bailouts could not happen again. However, the letter says, the Fed’s proposed rule implementing Section 1101 does not place “meaningful restrictions on the agency’s emergency lending powers.”
MORE HERE: http://wonkynewsnerd.com/lawmakers-urge-tougher-limits-on-emergency-lending-by-fed/
